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Roper Technologies Inc, USA
COMPANY WATCH
ITT Corp, USA Key Figures (US$ million) Three months ended 31.12 2015
Roper Technologies Inc, USA 2014
Revenue Of Which: Industrial Process
666.8
660.0
300.1
340.7
Costs of Revenue
465.5
443.1
Operating Income
53.8
43.9
Net Income Attributable to ITT Corp
36.7
33.7
606.3
622.2
233.7
300.4
Orders Of Which: Industrial Process
Twelve months ended 31.12 2015 2485.6
2654.6
1113.8
1208.3
Costs of Revenue
1676.5
1788.2
Operating Income
380.1
266.4
Net Income Attributable to ITT Corp 351.8
184.5
2330.6
2683.0
936.7
1214.2
8
Pump Industry Analyst
943.6
946.1
182.0
219.6
Operating Profit Of Which: Industrial Technology
303.9
309.7
52.2
69.1
Income from Operations
278.7
283.7
Net Earnings
208.6
185.9
Net Orders Of Which: Industrial Technology
924.1
924.3
176.4
197.8
Twelve months ended 31.12 2015
2014
Net Sales Of Which: Industrial Technology
3582.4
3549.5
745.4
827.1
Operating Profit Of Which: Industrial Technology
1130.7
1097.7
214.5
247.6
Income from Operations
1027.9
999.5
696.1
646.0
3547.6
3538.1
731.8
808.9
Net Earnings Net Orders Of Which: Industrial Technology
COMMENT ITT Corp delivered revenue of US$2.5 billion in 2015, a 6% decline on 2014, primarily due to the impact of unfavourable foreign exchange of US$194 million. On an adjusted basis, full-year organic revenue decreased 1%, reflecting solid growth in global automotive brake pads that was offset by declines in the oil and gas and global general industrial markets, difficult prior-year comparisons in chemical and industrial pumps, and declines in aerospace. While GAAP operating income increased 43%, full-year adjusted operating income was flat. Industrial Process, which includes industrial pumps, saw fourth quarter GAAP revenue decrease 12% to US$300 million while GAAP operating income increased 5% to US$45 million. Organic revenue fell 6%, reflecting strength in short-cycle baseline pumps and valves, due
Net Sales Of Which: Industrial Technology
2014
2014
Revenue Of Which: Industrial Process
Orders Of Which: Industrial Process
Key Figures (US$ million) Three months ended 31.12 2015
to solid backlog, offset by declines in project pumps as well as aftermarket sales due to the impact of delayed customer maintenance. “In 2015, ITT collectively confronted a challenging macroeconomic environment that presented headwinds across a number of areas, including foreign exchange and oil and gas and industrial markets,” said ITT CEO and president Denise Ramos. “As we look ahead to 2016, we remain mindful of the ongoing volatility in the global macroeconomic environment and the impact these conditions will continue to have on our businesses. As a result, we will maintain our strong focus on managing those areas over which we have control by optimising and aligning our businesses and their respective cost structures to drive enhanced longterm value for shareowners.” ■ www.itt.com
COMMENT Roper Technologies Inc delivered 2015 GAAP revenue of US$3.58 billion, while adjusted revenue was US$3.59 billion, a 1% increase. Full year EBITDA was US$1.24 billion, or 34.6% of adjusted revenue. Operating cash flow increased 11% to US$929 million. Free cash flow was US$893 million, representing 25% of revenue. “2015 was a record year for Roper,” said Brian Jellison, Roper’s chairman, president and CEO. “Growth in our medical, software and RF businesses offset a significant decline in energy markets and negative foreign exchange.
Our businesses executed well, driving an 11% increase in free cash flow. We successfully deployed US$1.8 billion in strategic acquisitions during the year and are excited about our robust pipeline for 2016. We expect to deploy over US$1 billion in 2016, including the January acquisition of CliniSys Group Ltd which expands our global presence in software for hospital laboratories.” During the fourth quarter of 2015, Roper divested Abel Pumps LP to Hillenbrand Inc for E95 million in cash (see Pump Industry Analyst, September and October 2015). ■ www.ropertech.com
February 2016
ITT Corp, USA Key Figures (US$ million) Three months ended 31.12 2015
Roper Technologies Inc, USA 2014
Revenue Of Which: Industrial Process
666.8
660.0
300.1
340.7
Costs of Revenue
465.5
443.1
Operating Income
53.8
43.9
Net Income Attributable to ITT Corp
36.7
33.7
606.3
622.2
233.7
300.4
Orders Of Which: Industrial Process
Twelve months ended 31.12 2015 2485.6
2654.6
1113.8
1208.3
Costs of Revenue
1676.5
1788.2
Operating Income
380.1
266.4
Net Income Attributable to ITT Corp 351.8
184.5
2330.6
2683.0
936.7
1214.2
8
Pump Industry Analyst
943.6
946.1
182.0
219.6
Operating Profit Of Which: Industrial Technology
303.9
309.7
52.2
69.1
Income from Operations
278.7
283.7
Net Earnings
208.6
185.9
Net Orders Of Which: Industrial Technology
924.1
924.3
176.4
197.8
Twelve months ended 31.12 2015
2014
Net Sales Of Which: Industrial Technology
3582.4
3549.5
745.4
827.1
Operating Profit Of Which: Industrial Technology
1130.7
1097.7
214.5
247.6
Income from Operations
1027.9
999.5
696.1
646.0
3547.6
3538.1
731.8
808.9
Net Earnings Net Orders Of Which: Industrial Technology
COMMENT ITT Corp delivered revenue of US$2.5 billion in 2015, a 6% decline on 2014, primarily due to the impact of unfavourable foreign exchange of US$194 million. On an adjusted basis, full-year organic revenue decreased 1%, reflecting solid growth in global automotive brake pads that was offset by declines in the oil and gas and global general industrial markets, difficult prior-year comparisons in chemical and industrial pumps, and declines in aerospace. While GAAP operating income increased 43%, full-year adjusted operating income was flat. Industrial Process, which includes industrial pumps, saw fourth quarter GAAP revenue decrease 12% to US$300 million while GAAP operating income increased 5% to US$45 million. Organic revenue fell 6%, reflecting strength in short-cycle baseline pumps and valves, due
Net Sales Of Which: Industrial Technology
2014
2014
Revenue Of Which: Industrial Process
Orders Of Which: Industrial Process
Key Figures (US$ million) Three months ended 31.12 2015
to solid backlog, offset by declines in project pumps as well as aftermarket sales due to the impact of delayed customer maintenance. “In 2015, ITT collectively confronted a challenging macroeconomic environment that presented headwinds across a number of areas, including foreign exchange and oil and gas and industrial markets,” said ITT CEO and president Denise Ramos. “As we look ahead to 2016, we remain mindful of the ongoing volatility in the global macroeconomic environment and the impact these conditions will continue to have on our businesses. As a result, we will maintain our strong focus on managing those areas over which we have control by optimising and aligning our businesses and their respective cost structures to drive enhanced longterm value for shareowners.” ■ www.itt.com
COMMENT Roper Technologies Inc delivered 2015 GAAP revenue of US$3.58 billion, while adjusted revenue was US$3.59 billion, a 1% increase. Full year EBITDA was US$1.24 billion, or 34.6% of adjusted revenue. Operating cash flow increased 11% to US$929 million. Free cash flow was US$893 million, representing 25% of revenue. “2015 was a record year for Roper,” said Brian Jellison, Roper’s chairman, president and CEO. “Growth in our medical, software and RF businesses offset a significant decline in energy markets and negative foreign exchange.
Our businesses executed well, driving an 11% increase in free cash flow. We successfully deployed US$1.8 billion in strategic acquisitions during the year and are excited about our robust pipeline for 2016. We expect to deploy over US$1 billion in 2016, including the January acquisition of CliniSys Group Ltd which expands our global presence in software for hospital laboratories.” During the fourth quarter of 2015, Roper divested Abel Pumps LP to Hillenbrand Inc for E95 million in cash (see Pump Industry Analyst, September and October 2015). ■ www.ropertech.com
February 2016